Be It Enacted by the Senate and General Assembly of the State of New Jersey:

1. Section 1 of P.L.2002,
c.14 (C.56:8-110) is amended to read as follows:

1. a. A gift certificate,
prepaid bank card or gift card sold after the effective date of [this amendatory act]P.L. , c. (C.
) (pending before the Legislature as this bill) shall retain full unused
value until presented in exchange for merchandise [, or shall have any and all conditions and
limitations, as permitted in paragraphs (1) through (3) of this subsection,
disclosed to the purchaser of the gift certificate or gift card at the time of
purchase as provided in subsection b. of this section.

(1) In no case shall a gift
certificate or gift card expire within the 24 months immediately following the
date of sale.

(2) No dormancy fee shall be
charged against a gift certificate or a gift card within the 24 months
immediately following the date of sale, nor shall one be charged within the 24
months immediately following the most recent activity or transaction in which
the certificate or card was used.

(3) A dormancy fee charged
against a gift certificate or gift card as permitted by this subsection shall
not exceed $2.00 per month].

b. [The terms of any
expiration date or dormancy fee applicable to a gift certificate or gift card,
as permitted by subsection a. of this section, shall be disclosed to a consumer
by:

(1) written notice of the
expiration date or dormancy fee or both printed in at least 10 point font, on
the gift certificate or gift card, or the sales receipt for the certificate or
card, or the package for the certificate or card; and

(2) written notice, in at
least 10 point font, on the gift certificate or gift card, or the sales receipt
for the certificate or card, or the package for the certificate or card, of a
telephone number which the consumer may call, for information concerning any
expiration date or dormancy fee.](Deleted by amendment, P.L. , c. ) (pending before the Legislature as
this bill)

c. As used in this section:

["Dormancy fee" means a charge
imposed against the unused value of a gift card or gift certificate due to
inactivity;]

"Gift card" means a
tangible device, whereon is embedded or encoded in an electronic or other
format a value issued in exchange for payment, which promises to provide to the
bearer merchandise of equal value to the remaining balance of the device.
"Gift card" does not include a prepaid telecommunications or
technology card, prepaid bank card or rewards card;

"Gift certificate"
means a written promise given in exchange for payment to provide merchandise in
a specified amount or of equal value to the bearer of the certificate.
"Gift certificate" does not include a prepaid telecommunications or
technology card, prepaid bank card or rewards card;

"Merchandise" means
and includes any objects, wares, goods, commodities, services or anything
offered, directly or indirectly, to the public for sale;

"Prepaid bank card"
means a general use, prepaid card or other electronic payment device that is
issued by a bank or other financial institution, or a licensed money
transmitter, in a pre-denominated amount usable at multiple, unaffiliated
merchants or at automated teller machines, or both, but shall not include a
card issued by a retail merchant;

"Prepaid
telecommunications or technology card" includes, but is not limited to: a
prepaid telephone calling card; prepaid technical support card; or prepaid
Internet disk distributed to or purchased by a consumer; and

"Rewards card" means
a card or certificate distributed by the issuer to a consumer pursuant to an
awards, loyalty, rewards or promotional program, without any money or other
consideration or thing of value by the consumer in exchange for the card or
certificate.

(cf: P.L.2005, c.254, s.1)

2. This act shall take
effect on the 30th day following enactment.

STATEMENT

This bill provides that a gift
certificate, prepaid bank card or gift card sold after the effective date of
the bill will retain full unused value until presented in exchange for
merchandise. Thus, this bill creates a gift certificate, prepaid bank card or
gift card that never expires nor has a dormancy fee charged against it.

Existing statutory provisions
regulate the expiration dates and dormancy fees for gift cards and gift
certificates generally. As currently provided by law, a gift card or gift
certificate may contain certain conditions and limitations, which are disclosed
to the purchaser at the time of purchase. Those conditions and limitations are
as follows:

·In no case shall a gift certificate or gift card expire within
the 24 months immediately following the date of sale.

·No dormancy fee shall be charged against a gift certificate or a
gift card within the 24 months immediately following the date of sale, nor shall
one be charged within the 24 months immediately following the most recent
activity or transaction in which the certificate or card was used.